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Behavior by a machine that, if performed by a human being, would be considered intelligent study of how to make computers do things at which,

at the moment, people are better (Rich and Knight [1991]) Theory of how the human mind works (Mark Fox)

Make machines smarter (primary goal) Understand what intelligence is (Nobel Laureate purpose) Make machines more useful (entrepreneurial purpose)

Learn or understand from experience Make sense out of ambiguous or contradictory messages Respond quickly and successfully to new situations Use reasoning to solve problems

A computer can be considered to be smart only when a human interviewer, conversing with both an unseen human being and an unseen computer, can not determine which is which

Robopets Widespread viruses, security holes aplenty AI-powered CRM Fasterand many morecomputers

How Artificial Intelligence Differs from Conventional Computing

Based on an Algorithm (clearly defined, stepby-step procedure) Mathematical Formula or Sequential Procedure Converted into a Computer Program Uses Data (Numbers, Letters, Words) Limited to Very Structured, Quantitative Applications

Calculate Perform Logic Store Retrieve Translate Sort Edit Make Structured Decisions Monitor Control

Based on symbolic representation and manipulation A symbol is a letter, word, or number represents objects, processes, and their relationships Objects can be people, things, ideas, concepts, events, or statements of fact Create a symbolic knowledge base

Uses various processes to manipulate the symbols to generate advice or a recommendation AI reasons or infers with the knowledge base by search and pattern matching Hunts for answers

Traits or capabilities that researchers would like an intelligent system to display Deduction, reasoning, problem solving Knowledge representation Planning Learning Natural language processing Motion and manipulation

Perception Social intelligence Creativity General intelligence

Is software that uses a knowledge base of human expertise for problem solving, or clarify uncertainties where normally one or more human experts would need to be consulted

Expert Systems Natural Language Processing Speech Understanding Robotics and Sensory Systems Computer Vision and Scene Recognition Intelligent Computer-Aided Instruction Neural Computing


Sophisticated technologies encompassing neural networks and business rules along with AI-based techniques are yielding positive results in transaction-oriented scenarios for financial services

Some applications of Artificial Intelligence are Credit authorization screening Mortgage risk assessment Project management and bidding strategy Financial and economic forecasting Detection of regularities in security price movements Prediction of default and bankruptcy Security/and or Asset Portfolio Management

Artificial intelligence functions are made possible by computerized neural networks that simulate the same types of connections that are made in the human brain to generate thought. Currently, the technology is used mostly to analyze data for genetics, pharmaceutical and other scientific research. It's seeing little use in CRM right now, though it has tremendous potential in the future AI-enhanced analytics programs also provide survival modeling capabilities -- suggesting changes to products based on use. For example, customer patterns are analyzed to learn ways to extend the life of light bulbs or to help decide the correct dosage for medications.

Internet bookstore uses AI to learn about its customers tastes in books Federal Express Corporation (FedEx), with help of Trajecta(AI system), was able to find customers who were ready to drop of their packages at the FedEx office Expert Systems can help card issuers determine whether to accept a proposed credit card purchase

Smarter artificial intelligence promises to replace human jobs, freeing people for other pursuits by automating manufacturing and transportations. Self-modifying, self-writing, and learning software relieves programmers of the burdensome task of specifying the whole of a programs functionalitynow we can just create the framework and have the program itself fill in the rest (example: real-time strategy game artificial intelligence run by a neural network that acts based on experience instead of an explicit decision tree). Self-replicating applications can make deployment easier and less resource-intensive. AI can see relationships in enormous or diverse bodies of data that a human could not

Disadvantages (Risks) Potential for malevolent programs, cold war between two countries, unforeseen impacts because it is complex technology, environmental consequences will most likely be minimal.

Self-modifying, when combined with selfreplicating, can lead to dangerous, unexpected results, such as a new and frequently mutating computer virus. As computers get faster and more numerous, the possibility of randomly creating an artificial intelligence becomes real. Military robots may make it possible for a country to indiscriminately attack lessadvanced countries with few, if any, human casualties. Rapid advances in AI could mean massive structural unemployment AI utilizing non-transparent learning (i.e. neural networks) is never completely predictable